Todays grain prices in my part of the world = soybeans at cargill siouxcity iowa were posted = 14.85 per bushel and corn at waldbaum wakefield nebraska = 7.58 per bushel we had the first severe drought in our area last summer 2012 for many many years but in july and august 2012 corn prices ranged from 7.00 to over 8.00 per bushel and soybeans were 15.00 to 18.00 per bushel = i posted my thoughts on a sight yesterday and since looked up grain bids =
gary lunz laurel nebraska wrote:
.there is an old saying = loose lips sink ships = you talk about a rigged game = these so called stock advisers or analysts of today have a fart go wrong in the morning ending with #$%$ in their pants so then what do they do = since they had a bad day they decide to issue a rumor so far away from todays present date but i see this alot these days = they issue that statement way out there in the far future dates like 2014 to 2015 = news flash this is march 2013 so as far as corn prices and wheat soybeans oats and even hogs and cattle = between now and then = hell yes it will all get lower and then higher = news flash = the markets go up or down each day but when some report comes out negative or positive as far as a hold buy or sell rateing = that influences traders to buy or at times panic sell fearing the same panic selling by large volume = many of these so called stock analysts either go long or short pick the direction and then advise all their clients to go the direction they are influenceing the market to go so they can make some fast money = as far as grain and livestock prices go = people have to eat and in the last couple years these farmer produced commodities have steadily went up = most studys show the up higher prices as much as 12 to 20 percen
I believe the analyst has drawn too direct of a correlation between the price of corn and the price of DE stock. If the correlation was as close as he suggests, the price of DE stock would have run up much higher with the drought-induced increase in corn prices. I'm not saying the price of corn has no effect on DE stock; higher prices presume higher profits for farmers, which means they have more capital to buy equipment. However, it isn't as closely related as he infers. Also, projections over the next 10 years are more important than the next 2, since the equipment purchased will be used for much longer than 2 years.
Cramer also bashed it for the specious reason that he says corn is going to go down. Well it isn't right now, the trend is up. This is clear manipulation folks. Sometimes I think Cramer might just be in league with his old hedge fund buddies.
These analysts always think they know more than the company itself, and they're always wrong.
Corn prices went up due to drought mostly (somewhat due to easy money), but a dry up of easy money just leads to inflation anyway. But the drought effect meant less corn to reap. There's still going to be plenty of planting and reaping to do even if price of corn goes back down. He's blowing smoke completely, this analyst.